New data from the National Statistics Institute (Instituto Nacional de Estatística or INE) shows the foreign population in Portugal has doubled since 2020, now accounting for 14% of the country's 11.4 million inhabitants. While the Social Democratic Party (Partido Social Democrata or PSD) is calling for parliamentary hearings to discuss the impact on public services, experts note that immigration has been a vital engine for economic growth and social security sustainability. Portugal currently ranks as the tenth country with the most foreign residents in the European Union.
Foreign population in Portugal reaches 14 percent
Wednesday, 1 July 2026AI summary
Context & Explainers
The INE housing price index (Índice de Preços da Habitação) tracks changes in residential property transaction prices across Portugal, published quarterly by the National Statistics Institute (INE). It covers both new and existing dwellings and breaks data down by region, property type, and buyer nationality.
The index is a key reference for policymakers debating housing affordability measures, for lenders assessing mortgage risk, and for buyers and investors tracking market trends. It has shown sustained price growth since 2015, with particularly sharp increases in Lisbon, Porto, and the Algarve driven by international demand, tourism, and housing shortages.
Related INE publications include monthly housing transaction data, rental indices, and construction statistics. Together, they provide the most comprehensive picture of Portugal's property market.
The Social Democratic Party ('Partido Social Democrata' or 'PSD') is a liberal-conservative political party in Portugal that is the leading partner of the The Democratic Alliance (AD) which is the country's ruling party, with Prime Minister Luís Montenegro.
The Social Democratic Party, despite its name, occupies the centre-right of Portugal's political spectrum. Luís Montenegro, who became Prime Minister in April 2024, leads Portugal's current minority government. The PSD has been one of Portugal's two dominant parties since 1974, having formed nine governments including four with absolute majorities. Montenegro, a former party leader from 1996-1999, was elected with the highest approval rating among party leaders at 10.7 points out of 20.
The Democratic Alliance is a centre-right coalition that includes the smaller CDS – People's Party, a Christian democratic party that has historically been the PSD's coalition partner. Together, they govern without a parliamentary majority, requiring case-by-case support from opposition parties to pass legislation.
